COLUMBUS, Ohio -- A consultant hired to complete background checks on Dan Gilbert and his business partners as they prepare to open a casino in Cleveland next month recommended that the Ohio Casino Control Commission grant Gilbert's group its gambling license.

"In our opinion, the applicant is qualified to be approved for a casino operator license," Theodore Grove of Spectrum Gaming Group reported to the commission at its meeting Wednesday.

That recommendation is expected to clear the way for the Cleveland casino to open on May 14 as scheduled, the first full gambling facility in Ohio. The commission will vote at its May 2 meeting on the recommendation to license Rock Ohio Caesars and key principals, such as Gilbert.

But Spectrum's recommendation came with red flags as it highlighted two past police investigations involving Gilbert and separately said that one member of the casino executive team should be disqualified for failing to fully disclose an incident in his past.

A Spectrum consultant also noted that Caesars, the internationally known gaming company that Gilbert partnered with and that will own a 20 percent stake of the Cleveland casino, has significant debt that will require constant monitoring by Ohio casino regulators. Caesars issued a statement Wednesday calling the consultant's assertion "factually inaccurate."

Spectrum also investigated Lyle Berman, the former world poker champion and current CEO of Lake Ohio Development. Berman's company will own a 10 percent stake in the Cleveland casino. Grove's summary report cleared Berman for a license. Spectrum's full 340-page report has not been publicly released.

Grove said Spectrum conducted its investigation against the backdrop of three primary criteria: financial stability, integrity and responsibility; personal character, honesty and integrity; and business ability, reputation and experience.

On the issue of financial stability and business experience, Grove praised Gilbert, who owns Quicken Loans and is the majority owner of the Cleveland Cavaliers, among other business interests, saying he had assembled a group of executives with proven success and the financial wherewithal to add more capital if they ever wanted.

While Spectrum expressed concern about Caesars' financial stability, it said that because Gilbert was the majority owner it felt comfortable recommending Rock Ohio Caesars for the gaming license.

But on the issue of personal character, Spectrum brought up two issues in Gilbert's past that drew law enforcement attention. As a student at Michigan State University in 1981 Gilbert was arrested and accused of running a sports betting operation on campus. The charge was later addressed through a diversion program and Gilbert was not convicted, Grove said.

But more concerning for Spectrum was the $60,000 loan Gilbert made in 2009 to former Detroit mayor Kwame Kilpatrick, who was convicted of corruption charges. Gilbert makes his primary home in Michigan.

Because of the nature of the crimes that Kilpatrick was convicted of and given his role at the time as an elected city official, the loan from Gilbert and similar loans from three other businessmen drew a police inquiry but no charges.

Grove said that Spectrum interviewed Gilbert, the FBI, local police and others involved and attempted to speak to Kilpatrick. The consultant finally concluded that the loan should not stop Gilbert's casino plans.

"While the loan reflects poor or questionable judgment by Mr. Gilbert, we don't believe the loan was anything other than a loan," Grove told the commission.

Gilbert's spokeswoman Jennifer Kulczycki noted that both incidents reported to the panel were already publicly known.

"Clearly the findings were not material and the integrity and the suitability of Mr. Gilbert was intact and highly recommended," Kulczycki said.

Roger Lee Dillard III is a Caesars employee who, after Caesars joined Gilbert's Rock Gaming company to form Rock Ohio Caesars, became vice president of finance for the new company. Dillard was also required to submit to a background check.

Dillard reported on his casino application that his certified public accountant license in North Carolina was inactivated in 2006 because he did not meet the continuing education requirements while he was living out of state, according to Spectrum's summary.

But Spectrum investigators found that Dillard's license was forfeited because he "violated prohibitions against deceptive and discreditable conduct in conjunction with the misstatement of continuing public education compliance," according to the executive summary.

Spectrum recommended Dillard not receive a casino license until the commission can schedule a hearing and have Dillard answer questions about why he did not fully disclose the reason behind losing his CPA license in North Carolina.

"Mr. Dillard is in the process of addressing this matter," said John Payne, Caesars president of enterprise shared services, in a statement released through Kulczycki. "Caesars, the world's most geographically diversified entertainment company, has many qualified financial professionals to fill the role while the matter is resolved, and the matter will in no way affect the timing of our opening in Cleveland or the quality of our operations."

Kulczycki said another Caesars employee, Jonathan Howard, has applied for a license to serve the same role as Dillard in case Dillard is unable to ultimately win the commission's support for a license.

Spectrum consultant Steve Ingis then told the commission that Caesars currently has $22.6 billion in outstanding debt and that its cash flow is only enough to cover interest payments. Still, Spectrum recommended the company receive a gambling license.

Commission member Martin Hoke asked Ingis if Spectrum's recommendation would be different if Caesars were not already a prearranged partner with Rock on its casinos in Cleveland and Cincinnati.

Ingis said: "No, it would not."

Still, the consultant went into some detail about the company's finances and said that Caesars, which once sought to do major gambling deals alone, now seeks out partners.

Caesars officials at the meeting were clearly disturbed by Ingis' comments and later issued a statement.

"It is unfortunate that the Ohio Casino Control Commission's gaming consultant was factually inaccurate in the hearing today regarding many matters, including several statements regarding Caesars' financial position. Caesars financial position continues to improve," said Jan Jones, executive vice president, government relations and communications for Caesars Entertainment Corp. "We are actively extending our maturities, had $1.8 billion in liquidity as of Dec. 31, 2011, and have reduced our debt outstanding by $5 billion over the last few years."

Gilbert and Penn National Gaming teamed in 2009 on a constitutional amendment that Ohio voters approved, granting four casinos in Ohio. Casinos in Cleveland and Cincinnati will be owned by Rock, and facilities in Columbus and Toledo will be owned by Penn.

The Toledo casino will open about two weeks after the Cleveland casino. The other two are slated to open in 2013.

The casino commission will meet again this morning in Columbus. Gilbert and his executive team will offer a presentation explaining the economic benefits the casino is expected to provide Northeast Ohio.

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